Shares of Vodafone Idea (Vi) jumped more than 23 per cent on Friday to hit a one-year high level as the company nears the end of its self-imposed deadline for fund infusion.
During the last market session of 2023, the share prices of telecom company Vodafone Idea jumped up by 23 per cent despite bleak profits over the last few months. Vi shares hit their one-year high on December 29.
Speaking at a post-result analyst call after second quarter results were announced, Vodafone Idea Chief Executive Akshaya Moondra had said the equity funding of about Rs 2,000 crore should close by the end of the third quarter (October-December) of FY24.
Vodafone Idea shares jumped from ₹13 to ₹16 on Friday, jumping over 20 per cent during the trading session. While this has become the company’s 52-week high, VI share prices’ 52-week low was recorded at ₹5.70 .
The company has been engaging with lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising, to make required investments for network expansion, including 5G rollout.
The company has said multiple times that any new funding by banks will be used for the deployment of capital expenditure, and not to roll over existing dues. After those obligations are complete, it will aim to focus on deploying funds for rolling out 5G.
Vi’s two main competitors — Reliance Jio and Bharti Airtel — have already launched 5G services in 4,333 and 3,500 cities, respectively.
